SPRING 2010 VOL 8, ISSUE 1 www.gleadell.co.uk
Working together works best The challenge of remaining profitable, efficient and focussed is a central issue for all parts of the grain trade in current conditions. A feeble UK economy, uncertain government direction, lower cereal prices and a volatile currency are some of the factors that have combined to squeeze margins for farmers, grain merchants and end-users of all types of cereals, pulses and oilseeds since the boom / bust days of 2007/8. Some consumers of grain - mainly but not solely in the food sector - have been proactive in securing sustainable, long term supplies and providing farmers with viable and profitable marketing schemes: The Rank Hovis Red Wheat contract has now proven its worth, despite many predictions that it would be a disaster for all concerned and, at three farmer meetings early in 2010, we found farmers enthusiastically eager to support the ‘100% British Wheat’ loaves baked by Hovis. Indeed, we now have a fairly long list of farmers either keen to join the Red Wheat growers club, or to expand their acreage if they are already growing Red Wheat. In a very real way, feedback from Red Wheat growers has shown a keen and positive sense of being involved in a very worthwhile project. Call it a ‘feel good factor’ or whatever you like - but seeing bread baked from 100% British wheat - which many hundreds of farmers have been involved in producing - certainly perks up the weekly supermarket shopping trip.
Contents MARKET PROSPECTS
The Weetabix Growers Group is a fine example of a well-known brand looking to local farmers to supply their mill on a long term basis - and rewarding these farmers for having best environmental practice and sustainability at the forefront of their agronomic approach to crop production. Again, in a clear statement that farmers like the scheme, we are faced with a waiting list of farmers who would have liked to grow more wheat for Weetabix. In the malting world, Carlsberg and Heineken have placed attractive null-lox malting barley contracts in front of farmers at a time when sensibly-priced spring malting barley contracts have been rarer than an honest MP. The area grown under this scheme is expected to grow significantly over the next few years, and it is to be hoped that farmers remember the commitment from these and other grain consumers, and give them on-going support when, and if, the market turns around. Gleadell’s role with these consumers of grain is to ensure that viable contracts are offered in the correct fashion and, working with expert agronomists, to make sure that the right advice is given to farmers. Finally, our role is to see that the contracts work financially and logistically and we work hard to see that this happens. This joined-up approach to crop production and marketing is one that all at Gleadell embrace wholeheartedly. It is a completely different world from growing crops on the basis of the hope that someone will want to buy them at an unknown price at some stage in the future and it is an approach that we are finding ‘rings a bell’ to many involved in the production, marketing and processing of grain. We firmly believe that Gleadell has a defined, positive role to play in helping the evolution of all grain markets of the future in many sectors of what will continue to be fast moving and volatile markets.
Gleadell’s traders take a look ahead at the market prospects for feed grain, milling wheat, malting barley, oilseed rape, pulses – and the organic sector.
POSITIVE POOL RESULTS
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Gleadell’s latest pool results prove, once again, the value of this low cost, hands-free option for farmers in what will continue to be fast moving and volatile markets.
FOCUS ON SEED
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Our involvement in the seed market is developing strongly and Gleadell also has links with all the major plant breeders so that we sell the best variety and offer the best potential end market.
FOCUS ON FERTILSER
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Gleadell continue to expand our port bagging and storage facilities at Immingham, Avonmouth and East Anglia, providing a great range of competitively priced, quality imported products.
FOCUS ON GLEADELL
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The Great Yarmouth Grain Terminal takes shape, to be ready for harvest … Gleadell’s Southampton shiploader gets to work… the largest grain ship ever loaded in the Humber sets sail with nearly 50,000 tonnes of feed wheat.
FOCUS ON BIOETHANOL Vireol’s wheat-based ethanol plant in Grimsby gets firmly underway.
David Sheppard, managing director, Gleadell Agriculture
Gleadell Agriculture Limited
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www.gleadell.co.uk
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